From coal to hydrogen: an old mode of transport that’s back in fashion April 1, 2021 | City Talk MyStory: In the second in a new series of stories about looking beyond profit, Schroders’ Nicholette MacDonald-Brown explains how French train manufacturer Alstom changed its spots. In the early twentieth century rail was a dirty business, burning coal and competing with other transport on the basis of speed, price and luxury. Pollution wasn’t a factor. [...]
Which equity sectors can combat higher inflation? March 31, 2021 | City Talk Some investors are worried that inflation is set to rise. We look at which equity sectors could prove to be the most resilient. The sharp rise in bond yields over recent weeks has rattled equity markets amid fears that fiscal stimulus and a post-pandemic spending splurge could stoke higher inflation. Five-year inflation expectations, as measured [...]
What 175 years of data tell us about house price affordability in the UK March 29, 2021 | City Talk What we’ve learned from nearly 200 years of housing data – and is property really a better investment than a pension? We dug into the treasure trove that is the Bank of England’s Millennium of data resource to analyse the history of house prices. We found that the average house in the UK currently costs more than [...]
Can China really become carbon net zero by 2060? March 24, 2021 | City Talk At the UN General Assembly in September 2020 China’s President Xi Jinping pledged that the country would become net zero by 2060. This was a surprise move that has been hailed as a significant step forward in the global effort to address the Climate Crisis, given that China is responsible for around 30% of global [...]
Which lockdown habits could last a lifetime? March 22, 2021 | City Talk “Prediction is very difficult, especially about the future.” This cautionary quip, attributed to Nobel Prize winning quantum physicist Niels Bohr, is applicable to anyone making forecasts, and particularly investors at this point in time. Stock markets will continue to be buffeted by daily newsflow around the pandemic. Successful investing in consumer stocks over the next [...]
How Asian stock markets shook off the pandemic March 10, 2021 | City Talk It seems ancient history now, but 2020 opened with a high degree of optimism for Asian markets. True, valuations were no more than reasonable given the share price gains of the previous twelve months, but conditions appeared favourable and there was a widespread consensus on a global economic recovery and a strong year ahead for [...]
Chasing “financial independence retire early” (FIRE): is it possible? March 8, 2021 | City Talk At what age are you planning to retire? For many the standard answer to this is “somewhere in my 60s or beyond”. Schroders analysis suggests that if you start saving for your retirement at age 20, you’ll need to save between 12% – 15% of your salary for 40 years to retire on 50% of your [...]
The investor’s dilemma: do sustainable funds need a digital detox? March 3, 2021 | City Talk Netflix documentary The Social Dilemma makes for uncomfortable viewing for users of social media channels such as Facebook, Instagram, Snapchat, YouTube or Twitter. i.e. pretty much all of us. And as a sustainability specialist who invests (at the time of writing) in Alphabet , the parent company of Google and YouTube, I find the issues covered extra [...]
London regains top spot in Schroders’ Global Cities Index March 1, 2021 | City Talk London has returned to the top spot in the Schroders’ Global Cities Index after scoring highly in its response to climate change in comparison to other cities in the index. This year, the index has introduced a transport score into the ranking, with a particular focus on mass transit systems. As a result, car-reliant Los [...]
Will pressure on Chinese tech firms spark renewed interest in value stocks? February 26, 2021 | City Talk The flotation of Ant Group in December last year was supposed to be a landmark event. The initial public offering (IPO) was set to raise $37 billion, valuing Ant at over $313 billion and making it the biggest IPO ever. It was due to list in Hong Kong and Shanghai, rather than having a US [...]